More Rite Aid store leases are coming up for sale
CoStar analytics director Brandon Svec says that 10,000-sq.-ft. pieces of retail real estate are impossible to find. Soon, however, eight will be coming to market.
Pending approval from the U.S. Bankruptcy Court of New Jersey, Rite Aid will be selling off eight store leases in Pennsylvania (two stores), Washington, New York, New Hampshire, Maryland, Massachusetts and California.
The new listings range in size from 10,237 to 22,782 square feet.
A&G Real Estate Partners will be handling the transactions for the properties, which also include fee-owned buildings and land in Washington and California, plus a land-only parcel in Asthabula, Ohio.
The fee-owned properties in Washington and California feature large parking lots with easements to adjacent retail centers and anchors.
“In all, we are marketing 24 fee-owned properties, including both land parcels and stores, in these private sales, and 55 new and previously announced retail leases,” said Mike Matlat, an A&G senior managing director. “It’s a tremendous opportunity for operators and investors.”
Including options, all leases being marketed by Rite Aid—the third-largest drugstore chain in the United States—have more than 10 years of remaining term. The new and previously announced offerings include freestanding stores as well as those in strip centers, power centers, and central business districts.
“The majority of the available stores offer drive-thru lanes,” noted A&G senior managing director Todd Eyler, leader of the firm’s valuation practice. “Retailers and investors should stay tuned for further announcements as A&G may be marketing additional Rite Aid leases--pending court approval and the outcome of ongoing negotiations between A&G and landlords.”
After declaring bankruptcy last October, put 92 leases on the market that ranged in size from 5,000 to 33,548 square feet. At that time, A&G co-president Andy Graiser stated that Rite Aid had the goal of strengthening its overall financial position by reducing its rent expenses.